Hi Guys, Just for interest I thought of making this thread to discuss what is fair pay for platinum miners, how does the wages in USA and Australia compare to those of South Africa? R12,500 per month is what they want, this would be a 100% increase they say. so they earn R6,000 per month now, that US$600? Just for interest, what do miners of the same skillset get in USA and AUS, the product is priced globally, so would the operational costs be so much different in these regions to warrant vastly different wages? Just some talking points to hopefully make a nice debate!
Werner you have to look at productivity as well. If a mine in the USA or Australia produces the same amount of platinum with say, 20 % of the work force , then their wages can be five times our wages. I suspect that this is the case, because that is the norm in south africa, we are not productive enough. Take the clothes industry for instance, we can't produce a T shirt in SA cheaper than the chinese land it in SA, the reason, productivity in china reduces the labour cost.
I stumbled on that, but in retrospect it doesn't really paint a true picture. You really need to compare apples with apples in this case. Rock drill operator in RSA is either a hand operated rock drill in which case R5.5k a month. Mechanised is around 10K a month. Aussies specialise in mechanised and are all qualified artisans and therefore get allot more but you can employ 2 operators and a diesel mechanic for less!!! not sure if Aussies even use hand operated drills. A general worker (mining) in RSA gets around R3k net pay per month and I suppose that would be same class as a miner in India. Think stores should be able to paint a better picture?
Thanks guys, that is exactly what I thought... I think USA and Australia run much higher productivity and possibly use more advanced systems and tooling resulting in more output with less workforce... If we were to implement the same to improve our workforce will be reduced and job-creation will be effected, so I guess that will not happen because of this, however if they do do this, each miner could get more pay, but there will be more unemployed... ok, I have no idea at all about the details, but find it interesting to discuss :)
Yes, furthermore our labour laws are dragonic, our companies can fire people. Last year, I think amplats decided to layoff 10,000 people or so, and all hell broke, the goverment interferred, forcing the mine not to do it. Now the goverment cant do anything. There is an old saying that goes as follows: People try to govern, but markets will always rule! At the end of the day, the platinum miners that are too many will lose their jobs.
Well I guess the platinum price will rocket on the back of PLT running out... NGPLT up 2% today.. If price does continue run, should be able to cover increases. Well there is always a distinct possibility that the unions and AMCU are conspiring to get the PGM prices up??